The United Nations Development Programme has called on Nigeria to implement a coordinated approach to more effectively address tax crimes. This recommendation was highlighted in a statement recently published on the UNDP’s website.
The UNDP emphasized that Nigeria’s fragmented regulatory oversight necessitates greater collaboration among various tax and financial oversight agencies. The statement read: “Nigeria needs a coordinated approach to tackle tax crimes due to overlapping regulatory oversight. A critical step is fostering cooperation among parallel agencies through a comprehensive understanding of each agency’s functions, legislative powers, and their ability and willingness to collaborate.”
The UNDP’s statement also underscored the close relationship between tax crimes and corruption. It noted that individuals and businesses involved in corrupt practices often evade reporting illicit earnings for tax purposes or manipulate income from legitimate sources to launder corrupt proceeds.
The statement explained: “Tax crimes and corruption are not independent of each other; they are two sides of the same coin. Those engaging in corrupt activities frequently fail to report illicit earnings for tax purposes and inflate legitimate income to launder proceeds.”
The UNDP stressed that effective deterrence, detection, and penalization of these crimes require cross-collaboration between tax authorities, law enforcement, and financial oversight agencies.
In related efforts, the Federal Government has partnered with the UNDP and the Organisation for Economic Co-operation and Development to launch the Tax Inspectors Without Borders for Criminal Investigation program. This initiative, which will unfold in three phases over 24-30 months, aims to enhance the capabilities of tax authorities and promote unprecedented collaboration.
The TIWB-CI program involves several key agencies, including the Independent Corrupt Practices Commission, the Economic and Financial Crimes Commission, the Tax Appeal Tribunal, the Nigeria Customs Service, the Nigerian Financial Intelligence Unit, and the Nigeria Police Force. The Federal Inland Revenue Service will act as the focal point and secretariat.
The UNDP’s Tax for SDGs initiative supports developing countries in boosting domestic resource mobilization and achieving Sustainable Development Goals (SDGs). TIWB-CI is a central component of this effort, aimed at reducing illicit financial flows and preserving government revenue for reinvestment in national development.
Recently, the House of Representatives advanced a bill proposing the establishment of the National Tax Crimes and Oversight Commission. Rep. Nweke Uche (PDP-Rivers), a co-sponsor of the bill, highlighted that the commission would address inconsistencies in tax assessment, reporting, and remittance, further supporting Nigeria’s move towards more effective tax crime management.
